Precautionary saving and risk aversion. An anticipated utility approach

Uzi Segal, Avia Spivak, Joseph Zeira

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Yaari (1987) proved that within the anticipated utility framework, a risk averse decision maker will have precautionary saving regardless of the sign of the third derivative of his utility function. In this note we extend (a modification of) this result for an n-period model.

Original languageEnglish
Pages (from-to)223-227
Number of pages5
JournalEconomics Letters
Volume27
Issue number3
DOIs
StatePublished - 1 Jan 1988

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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